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  • 00:00MR. BACH : IT IS HARD TO SUSTAIN INNOVATION AND GROWTH WHEN YOU GET BIG AND WE HAVE 60,000 EMPLOYEES NOW. WE VERY MUCH REALIZE WE MIGHT NOT HAVE IT ALL RIGHT. ME -- WE MAY WANT TO GET TRY DIFFERENT THINGS. WE WANT TO GIVE THEM THE CHANCE TO BUILD THEIR OWN THING WITHIN THIS BIGGER COMPANY AND THE RESOURCES WE CAN GIVE THEM TO BE SUCCESSFUL. STEPHANIE: WHAT IS SO SPECIAL ABOUT THE START OF ENVIRONMENT THAT MAKES EMPLOYEES, LEADERS SO EXCITED QUESTION MARK --EXCITED? MR. BOCH THE IMPACT. AT GOOGLE, YOU CHANGE A LINE OF CODE, YOU FEEL IT EVERY DAY. THE CHANGE -- THE CHANCE TO CHANGE SOMETHING AND IMPACT THE WORLD RIGHT AWAY THE NEXT DAY IS ENORMOUS. STEPHANIE: WHEN YOU SAY FEELING THINGS, IT TAKES ME TO THE PEOPLE DATA YOU HAD AT GOOGLE -- YOUR AVERAGE PERSON AT A COMPANY THREE YEARS AGO DID NOT WANT TO FILL OUT A 360 REVIEW. YOU HAVE GONE A DIFFERENT DIRECTION. WHAT IS GATHERING THE DATA AND INFORMATION ABOUT THE WAY YOUR EMPLOYEES FEEL, AND I WOULD SAY SOME OLD SCHOOL EMPLOYEES WITH A FIELD -- WHO CARES, DO YOUR JOB. WHY DOES IT MAKE GOOGLE A BETTER COMPANY, MORE EFFECTIVE? MR. BOCK: THIS MIGHT SOUND FUNNY COMING FROM GOOGLE, BUT FEELINGS ARE EVERYTHING. YOU WANT PEOPLE TO FEEL HAPPY, MOTIVATED, COMMITTED. THOSE ARE ALL GOOD THINGS FOR THE COMPANY. IT IS ALSO THE RIGHT THING TO DO. ALL THE DATA AND SURVEYING IS HARNESSED WITH THE PURPOSE OF HOW TO MAKE PEOPLE HAPPIER, AND THEN GOODNESS COMES FROM THAT. STEPHANIE: WHAT DID WE LEARN FROM THAT -- MARISSA MAYER AND YAHOO! GAVE EMPLOYEES THE OPPORTUNITY TO WORK FROM HOME. IN THEORY, THAT WOULD MAKE THEM HAPPY, AND SHE WALKED THROUGH THE FLOORS AND SAID WHERE IS EVERYONE -- THIS LOOKS LIKE A GRAVEYARD. SHE PULLED THEM BACK TO WORK, SAYING THEY WERE UNPRODUCTIVE. WHERE'S THE BALANCE BETWEEN GETTING YOUR JOB DONE, AND MAKING PEOPLE FEEL GOOD? MR. BOCK: GENERALLY PEOPLE WILL DO THE RIGHT THING IF YOU TELL THEM AND YOU GET THEM A HINT OF WHAT THEY ARE DOING. IF YOU ARE OUT IN LEFT FIELD, DOING TALKING CRAZY THAT DOES NOT MATTER TO ANYONE ELSE, YOUR MANAGER MAY LET YOU KNOW, BUT YOU ALSO SEE IT, AND YOUR PEERS WILL SEE IT AND SAY "LASZLO, WHAT ARE YOU DOING? CAN YOU COME WORK WITH THE REST OF US?" THE PROBLEM AT THE 90% LEVEL FIXES ITSELF. STEPHANIE: WHEN YOU COLLECT DATA -- FOR EXAMPLE, HOW MANY WOMEN IN GOOGLE PUT HIMSELF UP FOR PROMOTION -- WHY IS IT VALUABLE? WHY DO YOU NEED DATA? MR. BOCK: THE REASON IS WE DO NOT MAKE GREAT DECISIONS AS HUMAN BEINGS. WE THINK WHERE YOU ARE RATIONAL, OBJECTIVE, BUT THERE ARE ALL THESE THINGS IN OUR BRAIN THAT MAKE US MAKE SUBOPTIMAL, BAD DECISIONS. FOR EXAMPLE, WE SAW WOMEN WERE GETTING PROMOTED AT A LOWER RATE THAN MEN AND THERE IS NO REASON THAT SHOULD BE THE CASE. WHEN WE DUG INTO IT, WE FOUND THAT MEN NOMINATE THEMSELVES FOR PROMOTIONS. AT GOOGLE, YOU DO THAT -- THE MEN DO IT BEFORE THEY ARE READY, AND THE WOMEN WEIGHT TOO LONG, UNTIL THEY ARE MORE THAN READY TO WE TOLD EVERYONE IN THE COMPANY MEN ARE NOMINATING MORE OFTEN, BUT WOMEN ARE MORE SUCCESSFUL WHEN THEY ARE NOMINATING, AND THE HOME -- PROBLEM WENT AWAY. WOMEN RAISE THEIR HANDS EARLIER AND MORE. WE WOULD NOT HAVE KNOWN THAT A MESS WE HAVE A DATA ON THE BEHAVIOR. STEPHANIE: WHAT IS THE ADVICE -- EVERY COMPANY SHOULD COLLECT THE DATA, OR EVERY EMPLOYEE SHOULD STEP UP MORE? LET'S BE HONEST, THINK ABOUT THE RESOURCES GOOGLE HAS VERSUS YOUR AVERAGE COMPANY. MR. BOCK: ONE IS ABSOLUTELY STEP UP MORE, BUT IT IS ALSO NOT FAIR TO PUT THE ONUS ON PEOPLE FEELING UNCOMFORTABLE. IN OUR CASE IT WAS WOMEN FEELING UNCOMFORTABLE TO RAISE THEIR HAND. IT IS NOT FAIR TO SAY WOMEN, YOU HAVE TO BEHAVE DIFFERENT WAY. WHAT HAPPENS IS THE MEN HAVE TO COME -- BEHAVE DIFFERENT WAY, THE COMPANY HAS TO BEHAVE DIFFERENT WAY. -- DIFFERENTLY, THE COMPANY HAS TO BEHAVE DIFFERENT WAY. STEPHANIE: YOU ARE KNOWN TO BELIEVE THAT MANAGER SHOULD HAVE LESS POWER. THIS WOULD SOLVE ITSELF, BUT YOU ARE SAYING DO THE OPPOSITE. MR. BOCK: MANAGERS ARE NOT THAT HELPFUL. IT IS IMPORTANT TO HAVE A MANAGER. SOMETIMES YOU ARE LUCKY ENOUGH TO HAVE A GREAT ONE. MOST OF US, OVER OUR CAREERS, HAVE AVERAGE MANAGERS. SPEND A LOT OF TIME MANAGING THEM. TRYING TO MAKE SURE THEY ARE HAPPY. BY TAKING POWER AWAY FROM MANAGERS, GOOGLE CANNOT MAKE -- MANAGERS CANNOT MAKE PROMOTION DECISIONS. I TAKEN THAT AWAY, THE MANAGER IS A COACH TO HELP PEOPLE, AND YOU NEED TO STRUCTURE OF THE COMPANY, MY TEAM -- STEPHANIE: IF THAT IS THE CASE, WE'RE PUTTING THE WRONG PEOPLE IN MANAGEMENT, BECAUSE NORMALLY, HIGH-END FORM IS, THOSE BRUTALLY FOCUSED ON THE BOTTOM LINE, I PUT IN MANAGEMENT POSITIONS, -- HIGH-END PERFORMANCE, THOSE BRUTALLY FOCUSED ON THE BOTTOM LINE, I PUT IN MANAGEMENT POSITIONS AND THEY ARE NOT COACHES. MR. BOCK: BY FINDING WAYS TO UNLOCK THE POWER OF THE TEAM, GIVE THE TEAM MORE FREEDOM, AND TAKE POWER AWAY FROM THE MANAGERS, YOU ASHLEY GET BETTER DECISIONS. STEPHANIE: WHAT ELSE HAVE YOU LEARNED THROUGH DATA? MR. BOCK: ANOTHER THING WE WORKED ON AS HE WENT BACK TO THIS NOTION OF HEALTHINESS. WE FEED PEOPLE -- GIVE PEOPLE FREE FOOD, FREE SNACKS, AND WE FIGURE PEOPLE ARE GOING TO BE HAPPIER, MORE PRODUCTIVE, IF THEY ARE HEALTHIER. IT WILL SAVE ON HEALTH INSURANCE COSTS AS WELL. STEPHANIE: HAS IT SAVED ON HEALTH INSURANCE COSTS BECAUSE WE LEARN TO SPREAD YESTERDAY WILL STOP DOING THAT AND IT WILL SAVE THEM $600,000. MR. BOCK: WE DID SIMPLE THINGS LIKE WHERE YOU GO TO GET DRINKS. WE PUT WATER AND HAVE FREE BEVERAGES BEHIND CLEAR GAS, AND UNHEALTHY BEVERAGES -- GLASS AND UNHEALTHY BEVERAGES BEHIND OPAQUE GLASS. HEALTH INSURANCE COSTS HAVE BEEN TO CURVE. THEY ARE GOING UP EVERYWHERE, BUT THE RATE THEY ARE INCREASING HAS SLOWED TO MEDICALLY, AND WE THINK IT IS IN PART BECAUSE OF THESE INITIATIVES AROUND HEALTH AND THESE SMALL NUDGES. STEPHANIE: MILLENNIAL'S -- WE HEAR SO MUCH ABOUT WHAT THEY WANT, WHAT THEY NEED. ARE THEY THESE UNBELIEF -- UNBELIEVABLE PROFESSIONALS THAT WE NEED TO SATISFY, AND THE SOCIAL GOOD -- I KNOW YOU'RE TIRED OF THAT ANSWER MR. BOCK:. MR. BOCK:-- ANSWER. MR. BOCK: I WILL SKIP THE SOCIAL GOOD. WHEN WE INTERVIEW MELENDEZ, THEY WANT ALL OF THE STUFF -- FREEDOM, SOCIAL GOOD. WHEN YOU TALK TO PEOPLE THAT HAVE BEEN IN THE WORKFORCE FOR 20 YEARS, 30 YEARS, THEY SAY THE SAME THING, BUT 20 YEARS AGO YOU COULD NOT ASK FOR THAT STUFF. MILLENNIAL'S ARE MORE VOCAL, BUT THEY WANT THE SAME THING ALL OF US WANT. IF YOU ARE 50 YEARS OLD, SIX YEARS OLD IN THE WORKFORCE, PEOPLE AT THAT AGE WANT FREEDOM, -- 60 YEARS OLD IN THE WORKFORCE, PEOPLE AT THAT AGE WANT FREEDOM, AUTONOMY. WE WANT TO GET TO EVERYONE, AND THAT ATTRACTS MILLENNIAL'S. STEPHANIE: CAN MATURE COMPANIES CHANGE THEIR EGOS TO SATISFY EMPLOYEES NOT JUST WITH COMPENSATION, NOT JUST WITH BIG MANAGEMENT JOBS. ONE WOULD SAY IT IS EASY FOR GOOGLE TO DO IT. YOU ARE THE FIRST OF YOUR KIND. MR. BOCK: WHAT IS COOL IS WE ACTUALLY WERE NOT THE FIRST -- THERE HAVE BEEN A LOT OF COMPANIES DOING THIS WITHOUT THE SCIENCE AND DATA BECAUSE THEY HAVE GOOD INSTINCTS. STEPHANIE: LIKE WHO? MR. BOCK: THERE IS A COMPANY CALLED WEGMANS, A FAMILY-OWNED CHAIN, AND THEY HAVE ALWAYS GIVEN THEIR EMPLOYEES FREEDOM. THEIR COO TOLD ME THIS GREAT STORY ABOUT THIS BAKERY WORKER THAT A CUSTOMER CALL, I HAVE A WEDDING TOMORROW, THE CAKE GOT SCREWED UP, CAN SOMEBODY HELP ME? THE BREAKING WORRY -- THE BAKERY WORKER SHUTS DOWN THE BAKERY COMPLETELY, BIGS THE CAKE, COMPLETE ME SHUTS DOWN, THEY LOSE A DAY OF REVENUE. A GUY COMES BACK AND HIS MANAGER SAYS THAT WAS THE RIGHT THING TO DO. STEPHANIE: IF YOU WANT TO GIVE ADVICE TO AN EMPLOYEE ABOUT HOW YOU GET MORE OUT OF YOUR JOB, HOW YOU PERFORM BETTER, WHAT WOULD IT BE? MR. BOCK: THE BIGGEST THING WOULD BE WHAT IS THE RIGHT THING FOR THE END USER. JUST FOCUS ON DOING THE RIGHT THING FOR THEM, AND EVERY THING ELSE WILL WORK OUT. STEPHANIE: HOLD ON -- WHAT IS THE RIGHT THING? IF I'M SOME OF THAT SHOPS AT NEIMAN MARCUS, THE RIGHT THING IS SELL ME THINGS THAT 70% OFF, BUT THAT IS NOT THE RIGHT THING FOR THE STORE. MR. BOCK: HERE'S WHAT I WOULD SAY -- TAKE A SMALL RISK THAT FACES YOU IN THE FAVOR OF YOUR CUSTOMERS. IF YOU ARE A SMALL, TRYING TO FIGURE OUT HOW TO ADVERTISE ON GOOGLE, WE HAVE A BUSINESS THAT HELPS YOU. WE HAVE PEOPLE ON OUR TEAM THAT ARE ASKED THE SAME QUESTION AGAIN AND AGAIN BY A FAMILY-OWNED BOOT MANUFACTURER, OR WHAT HAVE YOU. WHEN THEY SAID IS THERE ANYTHING ELSE I COULD DO, THE CUSTOMER SAID I AM HUNGRY, I WOULD LOVE A PIZZA. THEY ORDERED A PIZZA AND EXPENSE THAT. IT WAS A CRAZY, WEIRD, DUMB THING TO DO, AND THE CUSTOMER LOVED IT. THE MANAGER SAID IT WAS THE RIGHT THING TO DO. FOR $20, WE WON THE LIFETIME LOYALTY OF THIS CUSTOMER BECAUSE THE EMPLOYEES THAT I WILL ORDER YOU A PIZZA. STEPHANIE: HERE IS MY TAKE AWAY -- AND DO THINGS THAT ARE SO CRAZY THEY JUST MIGHT WORK. LASZLO, THANK YOU FOR JOINING UP AT LASZLO BOCK. TODAY'S YOUR BEST SELF. HERE IS A BLOOMBERG BYTE BEFORE WE GO -- MOST VIEWED PERSON, NEIL CACHE KARI, JUST NAMED -- NEEL KASHKARI JUST NAMED
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Google's Using Workplace Data to Build a Better Employee

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